Post Your Comments

The gem and jewellery industry has sought GST of 1.25 percent from the government for the sector besides zero duty on rough diamond imports, cut and polished diamonds exports and coloured gemstones.

"In a representation, we have suggested the government to continue with nil duty on import of rough diamond and exports of cut and polished diamonds. The industry fears that any adverse tax structure may lead India to lose its leadership position in the diamond cutting and polishing industry," Gem & Jewellery Export Promotion Council (GJEPC) chairman Praveenshankar Pandya told reporters here.

He said that after a survey conducted over nine months across 7,000 registered members, the industry body has arrived at the conclusion that a recommendation should be sent to the government seeking exemption of gems and jewellery sector under GST.

The All India Gems and Jewellery Trade Federation (GJF) has also raised concerns on the proposed GST rate of 4 percent and has proposed a rate of 1.25 percent instead for the gems and jewellery sector.

GJF sought minimal GST rates even as the GST Council commenced a crucial 3-day meeting to set rates.

Chairman of GJF, Sreedhar G V said, gold is a very sensitive product and cannot be taxed at higher levels. While the G&J industry is now gearing up for the forthcoming GST era, the proposed rate of 4 per cent will hamper the growth of the industry and turn into unorganised sector.

"This will result in drop in tax compliances and revenue and will also encourage smuggling. There is an entire precedent on VAT collections in the past and 1 per cent was the highest revenue collector from G&J industry.

"Therefore, GJF has proposed that the GST rate for the gems and jewellery sector should be kept at 1.25 percent, if the government expects the industry to get organised," he said.